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250918 Red Door/Metco Meeting Notes

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Red Door-

Thu, Sep 18

On the financials, I noticed that there are almost no expenses shown for our water/sewer bill. Is this getting paid and being recorded somewhere else?

Thu, Sep 18

Also on the financials, one entry for $15.00 merchandise income (?) What is that for and can it be recorded somewhere else? I would rather not have anything "merchandise" that we need to be collecting sales tax on. Have this moved to a fee

@Ryan Dayhoff

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Thu, Sep 18

Did Jeremy get us a bid on concrete repair/replacement? Sent follow up to Jeremy.

Thu, Sep 18

Metco-

Thu, Sep 18

Please remind me what we are recording as business insurance...the change from $370.79 to $54.44 looks good, but just checking.

Thu, Sep 18

Wages- just curious why basically double what the past months have been? Angela is budgeted for 50 hours biweekly. Aug 25 - Sep 7 she worked an additional hours to clean out a trash unit.

Thu, Sep 18

checking on parking

@Joseph McClendon

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Thu, Sep 18

remove SF from parking

@Joseph McClendon

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Thu, Sep 18

Push climate control rates

@Joseph McClendon

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Thu, Sep 18

Add a parking spaces available banner at Red Door

@Joseph McClendon

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Thu, Sep 18

There are no rows in this table

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Portfolio (Red Door + Metco) – June/July/August 2025 vs June/July/August 2024

Occupancy: Portfolio up to ~81% (vs. ~77% LY). Red Door drove most of the gain.

Move-ins / Move-outs: 69 move-ins vs. 43 outs (net +26) this Q3 vs. flat last year.

Revenue: Slightly above LY (~$36K in Aug). Gross potential rent up ~18% YOY, showing rate growth and upside from higher occupancy.

Expenses / NOI: Expenses stable, higher marketing spend. NOI flat YOY but poised to grow in Q4 with Oct rent increases.

Length of Stay: Overall ~30+ months (Red Door ~31, Metco ~37). SpareFoot tenants average only ~4–5 months.

Wins: Higher occupancy, strong lead conversion (~90–99%), big October rate increases scheduled (~26% average, +$20/unit). Opportunities: Lengthen tenant stays (esp. promo/SpareFoot renters), reduce reliance on aggregator leads, convert occupancy gains into NOI by cutting promos and managing expenses.

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Red Door

Occupancy: 81% in Aug (up from 76% LY). Net +25 rentals in Q3.

Leads & Conversion: 41 Q3 leads → 53 move-ins. YTD conversion ~99%.

Revenue: ~$30K collected in Aug (flat YOY), but Gross Potential Rent up 21%. Q4 revenue lift expected as promos roll off.

Expenses / NOI: Higher marketing and aggregator fees, NOI behind budget.

October Rent Increases: 102 tenants, avg +$21 (+27%), ~$26K annualized.

Wins: Huge occupancy gains, excellent conversion, strong rent increase pipeline. Opportunities: Improve retention of promo renters (SpareFoot avg stay 4 mo), reduce delinquency/auctions, taper costly promotions.

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Metco (Ethel)

Occupancy: 81% in Aug (flat YOY). Net +1 rental Q3.

Leads & Conversion: 17 Q3 leads → 16 move-ins. YTD conversion ~87%. Lead flow rising steadily.

Revenue: ~$5.7K collected in Aug (flat YOY), Gross Potential Rent up 4%.

October Rent Increases: 35 tenants, avg +$17 (+24%), ~$7.3K annualized.

Expenses / NOI: Stable, NOI flat YOY.

Wins: Steady occupancy, improving lead flow, October rent increases add ~10% revenue. Opportunities: Push occupancy toward 90%, diversify lead sources beyond SpareFoot, continue fine-tuning rates and insurance.

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📌 Outlook: Occupancy gains have positioned both facilities for strong Q4. October rent increases, reduced promos, and controlled marketing spend should drive revenue growth and NOI expansion.

📊 Red Door Lead Sources (139 total leads → 54 move-ins, 39% conversion)

Call Center: 76 leads → 31 move-ins (41%)

Storagely Online (all sub-channels): 48 leads → 15 move-ins (31%)

SpareFoot (all sub-channels): 14 leads → 8 move-ins (57%)

Other / Misc.: 1 lead → 0 move-ins

Metco (47 total leads → 21 move-ins, 45% conversion)

Call Center: 19 leads → 8 move-ins (42%)

SpareFoot (all sub-channels): 15 leads → 7 move-ins (47%)

Storagely Online (all sub-channels): 13 leads → 6 move-ins (46%)

Portfolio Total (186 leads → 75 move-ins, 40% conversion)

Call Center: 95 leads → 39 move-ins (41%)

Storagely Online: 61 leads → 21 move-ins (34%)

SpareFoot: 29 leads → 15 move-ins (52%)

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📌 Takeaway:

Call Center is the largest volume source, with ~40% conversion.

SpareFoot has fewer leads but strong conversion (~52%), though LOS is very short (~4 months).

Storagely is delivering volume but with lower conversion (~31–34%).

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October Rent Increase Summary

Red Door Storage

Tenants Impacted: 102

Average Increase: +$21.54 per month

Average % Increase: +26.7%

Total Monthly Revenue Impact: ≈ +$2,200 (≈ $26K annualized)

Metco Self Storage (Ethel)

Tenants Impacted: 35

Average Increase: +$17.43 per month

Average % Increase: +23.7%

Total Monthly Revenue Impact: ≈ +$610 (≈ $7.3K annualized)

Portfolio Total

Tenants Impacted: 137

Average Increase (blended): +$20.60 per month

Average % Increase (blended): ~26%

Total Monthly Revenue Impact: ≈ +$2,810 (≈ $33.6K annualized)

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📈 Takeaway: Both sites are implementing sizable October increases, with nearly one-third of the portfolio impacted. The blended ~$20 average hike represents a meaningful step-up in rental income, positioning Q4 for stronger revenue and NOI.

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⏳ Average Length of Stay

Metco (Ethel)

Active Tenants: 67

Overall Avg LOS: ~37 months

SpareFoot Avg LOS: ~4 months

Red Door

Active Tenants: 302

Overall Avg LOS: ~31 months

SpareFoot Avg LOS: ~3.9 months

Portfolio

Active Tenants: 369

Overall Avg LOS: ~32 months (2.7 years)

SpareFoot Avg LOS: ~4 months

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📌 Takeaway:

Overall tenants stay 2.5–3 years, providing a stable base.

SpareFoot renters stay only ~4 months, highlighting their short-term nature.

The contrast underscores why we should taper reliance on aggregator leads now that occupancy is above 80%.

⏳ Length of Stay – Combined (Active + Vacated)

Metco (105 tenants total)

Average LOS: ~30 months (2.5 years)

Median LOS: ~10 months

Red Door (409 tenants total)

Average LOS: ~28 months (2.3 years)

Median LOS: ~15 months

Portfolio (514 tenants total)

Average LOS: ~28 months (2.3 years)

Median LOS: ~14 months

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📌 Key Message for Owners:

When you combine both active and vacated tenants, the true average stay is ~2.3 years, but the median stay is just over 1 year.

This shows the mix of long-term “anchor” tenants and short-term promo/SpareFoot tenants who churn quickly.

LOS Active Only

LOS Active Only

property

active_tenants

avg_LOS_months

avg_LOS_sparefoot_months

Metco

36.78

Red Door

302

31.08

3.86

Portfolio

369

32.11

3.92

There are no rows in this table

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Length_of_Stay_Summary__Combined_Active___Vacated_

Length_of_Stay_Summary__Combined_Active___Vacated_

property

count

mean

median

Metco

105

30.32

10.1

Red Door

409

27.95

Portfolio

514

28.44

14.28

There are no rows in this table

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Q3 2025 Performance Overview – Red Door & Metco Self Storage

Portfolio Overview (Q3 2025 vs. Q3 2024)

The overall self-storage portfolio (Red Door + Metco) has shown strong operational improvement in Q3 2025 to-date compared to the same period last year. Key performance indicators for the quarter (July 1 – Sept 16) include:

Leasing Activity: Combined move-ins jumped to 69 (53 at Red Door, 16 at Metco) in Q3 2025 to-date, nearly double the ~37 move-ins during Q3 2024. Move-outs totaled 43 (28 Red Door, 15 Metco) vs. 36 in Q3 2024, yielding a net gain of ~26 tenants this quarter (vs. essentially flat net last year). This surge in net rentals drove portfolio occupancy higher.

Occupancy: As of the end of August 2025, physical occupancy stands around 81% (by unit count) across the portfolio, up from roughly 77% a year ago. For example, Red Door’s unit occupancy improved to ~81% in Aug 2025 from ~76% in Aug 2024. Metco is holding about 81% occupancy, up slightly from ~80% last year. In terms of square footage, the portfolio is ~79% occupied vs ~77% last year (Metco’s occupancy by area dipped slightly due to a minor increase in rentable space, but Red Door’s climbed significantly). Overall, this indicates higher rental occupancy year-over-year, a positive trend.

Revenue: Rental income is gradually rising in step with occupancy. Red Door’s monthly rental revenue reached about $30–33K in August 2025, a modest uptick from roughly $29–32K in August 2024. Metco’s August 2025 rent was about $5.7K, roughly flat versus $5.6K last year. Gross Potential Rent (theoretical max revenue at full occupancy) has expanded ~18% year-over-year – about $44.3K in Aug 2025 vs. ~$37.5K last year – reflecting higher rates and added rentable space at Red Door. This gap between potential and actual indicates revenue upside as occupancy improves. Ancillary income (fees, insurance, etc.) has also contributed, keeping total income slightly above last year’s level despite move-in promotions.

Expenses & NOI: Operating expenses appear manageable. We did invest more in marketing this year (e.g. higher pay-per-click spend and aggregator fees) to drive occupancy. Nonetheless, expense growth is generally in line with expectations (inflationary increases in utilities, personnel, etc.). With revenue up only slightly and marketing costs higher, Net Operating Income (NOI) for Q3 2025 is roughly flat to the prior year quarter to-date. The payoff is that we’ve dramatically increased occupancy, positioning us to boost NOI going forward as new tenants begin paying full rent. We have a sizable wave of rental rate increases scheduled (effective Oct 1) which will immediately improve revenue (details below). Controlling discretionary spend in coming months as facilities fill up will further help convert revenue gains into NOI.

Wins: The portfolio’s major win this quarter is occupancy growth – we’ve backfilled vacancies especially at Red Door, driving overall occupancy above 80%. Additionally, our marketing and sales efforts are yielding high conversion rates (see below), meaning we’re efficiently turning leads into paying tenants. We’ve also identified revenue upside via aggressive rate management – implementing rent increases for existing customers (over 130 leases) in October, averaging ~$20 rent hike (~26% increase) per customer, which will bolster Q4 income.

Opportunities: With occupancy now around 80%, we can focus on maximizing revenue per occupied unit. This includes successfully executing the scheduled rate increases and continuing to push street rates where demand allows. Another opportunity is improving tenant retention and length of stay, particularly for those acquired through promotional channels (e.g. SpareFoot). These aggregator-sourced tenants have tended to stay only ~4 months on average in our facilities, significantly shorter than the overall tenant average of 2.5–3 years. Reducing churn (or backfilling move-outs quickly) will be key to maintaining occupancy gains. Finally, as Red Door approaches stabilization, we can dial back reliance on paid aggregators (which deliver short-term tenants)

storagepug.com⁠

and refocus on lower-cost marketing and long-term customer acquisition, especially for Metco which still has ~19% vacancy to fill.

Red Door Storage – Q3 Update

Occupancy & Rentals: Red Door Storage made impressive strides in Q3. Occupancy rose to 81% (299 units occupied out of 369) as of August, up from 76% a year prior. In fact, we added net +25 units in Q3 to date (July 1–Sept 16), reversing the slight net loss in Q3 last year. This came from a surge in move-ins: 53 new move-ins during the quarter so far, vs only 25 in the same period last year. Notably, July and August saw very strong rental activity (21 and 27 move-ins, respectively), easily outpacing move-outs. Figure 1 illustrates the spike in move-ins in Q3 2025. Move-outs (28 total for the quarter) were generally routine; the facility did go through an auction cycle in June which briefly increased move-out count (21 in June) but also freed up units that were quickly re-rented in July/August. Overall, unit occupancy climbed from 276 occupied in June to 299 in August – a very positive trend.

Figure 1: Red Door – Leads vs. Move-Ins/Move-Outs, June–Aug 2025. Red Door saw a significant jump in move-ins in July/Aug, following a dip in June (which was impacted by auction-related move-outs). Lead volumes remained steady, indicating strong conversion of leads into actual rentals.

Leads & Conversions: Red Door generated 41 new leads in Q3 to date, on par with last year’s lead volume (we had a slow summer 2024 in leasing due to high vacancies from expansion). The crucial difference is in conversion rate – our leasing team converted virtually every viable lead into a rental. Of those 41 Q3 leads, 53 resulted in move-ins during the quarter (some leads from late Q2/earlier in the year converted this quarter, hence moves exceed new leads this period). Year-to-date, Red Door has logged 136 leads which led to 135 move-ins – an outstanding ~99% lead-to-lease conversion. This highlights a major win: our marketing and sales process (pricing, follow-up, and on-site experience) is effectively capturing demand. We’re getting qualitatively good leads as well – many of the new tenants are taking larger units and adding insurance, etc. One area to watch is the source of these leads: a sizable portion have come via SpareFoot (aggregator) which helped drive quick occupancy gains but tends to bring shorter-term renters. We had 14 SpareFoot leads YTD, 8 of whom moved in. Those SpareFoot renters so far have an average stay of ~4 months (some have already moved out after a few months of discounted rent). In contrast, Red Door’s overall tenant base (including legacy customers) averages 31 months length of stay. This disparity suggests an opportunity to improve retention on promo customers – for instance, by engaging them early about long-term needs or transitioning them off promotional rates to standard rates to encourage longer stay. Industry data shows aggregator-sourced tenants often stay under 6 months on average

storagepug.com⁠

, so our experience is in line with that. Moving forward, as the facility is now above 80% full, we can consider scaling back SpareFoot participation (to reduce fee outlay and churn) and focus on driving more organic and referral leads which typically yield longer-term tenants.

Financial Performance: Despite the big jump in occupancy, revenue growth at Red Door has been modest so far – largely due to free month promotions and pro-rate timing for the new move-ins. Monthly gross potential rent (at 100% occupancy) is ~$37.7K as of August, which is ~21% higher than a year ago (reflecting higher standard rates and additional climate-controlled units online) – a great sign. However, actual rent collected in August was about $30.2K. This is only slightly higher than August 2024’s ~$29K. The reason is that many of the recent tenants received move-in incentives (e.g. SpareFoot’s first-month-free or other discounts), so the full revenue impact will be realized in coming months. For example, tenants who moved in during August under promotions will start paying full rent in September/October. We expect a strong uptick in rental revenue in Q4 as these promotions burn off. Ancillary revenue at Red Door has been healthy – late fees are tracking ahead of last year (we collected ~$943 in August) and admin fees have increased with the high move-in volume. Total income Jan–Aug 2025 was ~$268.7K, slightly under budget (~98% of budget) but trending upward each month. On the expense side, Red Door’s operating expenses Jan–Aug totaled ~$195K (income tax basis). We did incur elevated marketing costs: about $9.8K in pay-per-click ads (versus $7.2K budgeted) and ~$1K in SpareFoot aggregator fees for the period. These investments directly fueled our occupancy gains – a justifiable trade-off. Other expense categories have been close to plan or under (repairs/maintenance and utilities are in check; no major surprises). As a result, Red Door’s NOI for the first eight months came in around $73.3K (after $195K expenses from $268.7K income). This is below budget, primarily due to the timing of revenue (slower winter and promotions in summer) and the extra marketing spend. Opportunity: With occupancy now climbing and numerous rate increases set for existing tenants, Red Door is positioned to significantly grow revenue and NOI. We have 102 rent increases scheduled effective October 1st at Red Door alone, with an average +$21.54 rent increase (about +26.7%) per impacted tenant. This will immediately add roughly $2,200 in monthly rent income (nearly $26K annualized) if all are implemented. The overall strategy for Red Door now is to maximize revenue per square foot – by implementing these rate increases, curtailing discounts for new rentals (since occupancy is healthy), and focusing on tenant retention to reduce turnover costs. With prudent expense management (we can taper marketing spend now and leverage more cost-effective channels), we expect Red Door’s NOI to improve markedly in Q4 and into next year as the facility stabilizes at a high occupancy and higher rental rates.

Wins: Red Door’s Q3 wins include the dramatic occupancy gain (filling units that were added in the expansion), excellent lead conversion efficiency, and a pipeline of rent increases that will boost revenue. Customer feedback has been positive, and the mix of unit sizes occupied is well-balanced (we filled many large climate-controlled units in Q3, which drives up average rent/unit). The high occupancy also gives us pricing power to push rates.

Opportunities: Going forward, Red Door should focus on lengthening the stay of new customers (especially those acquired via promotions). This might involve improved onboarding and customer service touchpoints to increase loyalty, or targeted offers to encourage longer commitments once initial promotions end. We should also monitor competition and adjust street rates strategically – with occupancy above 80%, we can test rent increases for new rentals as well. Another opportunity is to reduce accounts receivable/auction churn – the June dip in occupancy was partly due to auctioning units for non-payment. Strengthening our lien process earlier or offering cure incentives might keep some of those tenants paying (or get them out sooner to re-rent to paying customers faster). Overall, Red Door is moving into a harvest phase: keep units full at maximized rental rates and optimize operations to convert revenue to profit.

Metco Self Storage (Ethel) – Q3 Update

Occupancy & Rentals: Metco Self Storage in Ethel remained steady through Q3. Occupancy is at 81% (67 of 83 units occupied) at end of August 2025, essentially on par with ~80% a year ago. We saw a small net gain of +1 unit in Q3 to date – 16 move-ins vs 15 move-outs (last year Q3 net was +4). While not as dramatic as Red Door, Metco had a solid August with net +5 rentals (10 move-ins, 5 outs). Figure 2 shows the monthly leasing activity. July was a bit sluggish (4 ins, 6 outs, net –2) after a slight dip in June, but August picked up thanks to seasonal demand and targeted promotions. Notably, many of the August move-ins were a result of cross-marketing from Red Door’s spare leads and an uptick in local marketing around Ethel. The facility has about 16 vacant units currently, so there’s room to grow occupancy further. We should aim to push Metco closer to 90% occupancy over the next few quarters.

Figure 2: Metco – Leads vs. Move-Ins/Move-Outs, June–Aug 2025. Metco saw increasing lead generation through the summer, with August move-ins spiking to 10 (a quarterly high), outpacing move-outs and raising occupancy.

Leads & Conversions: Lead flow for Metco has improved this quarter. We received 17 leads in Q3 2025 (vs only ~10 in Q3 2024). These came from a mix of walk-ins, call-ins, and online inquiries; notably, 8 leads came via SpareFoot. Our conversion rate at Metco is also strong: of the 17 leads, 16 resulted in move-ins during the quarter (some leads were carry-overs from earlier, similar to Red Door’s situation). Year-to-date, Metco has 45 total leads and 39 move-ins (~87% conversion). This is a significant improvement in lead volume and efficiency over last year, when Metco struggled with visibility. The coordinated marketing with Red Door and increased online presence have paid off. Like Red Door, Metco leveraged SpareFoot to capture some of this demand – 17 SpareFoot leads YTD yielded 8 move-ins (47% conversion). The SpareFoot renters at Metco also exhibit relatively short stays (several moved out within 2-3 months). Overall tenant longevity at Metco is better – the average length of stay is ~37 months (just over 3 years) for active tenants, a bit higher than Red Door’s average. This indicates Metco has a core of long-term renters (likely due to its more rural location and less turnover). The key for Metco will be to keep the new SpareFoot customers longer if possible and continue boosting local awareness so that we’re not solely depending on aggregator leads. The lead-to-rental funnel is working efficiently now; the task ahead is simply getting more leads to hit that last 15-20% vacancy. Given the small size of Metco (83 units), each additional rental has a noticeable impact on occupancy percentage and revenue, so even a handful of move-ins can move the needle.

Financial Performance: Metco’s financial performance in Q3 is stable with slight growth. Rental revenue for August 2025 was about $5,655, just marginally above August 2024’s ~$5,600. July’s rent was ~$5,519 (vs $5,219 last July, ~6% increase). Year-to-date, Metco’s rental income is tracking a bit above last year, aided by steady occupancy and some rate adjustments. We have been incrementally raising street rates on certain unit types as occupancy allows – for instance, the gross potential rent at Metco increased to ~$6,600/mo in Aug 2025 from $6,344 last year (about +4%). This indicates we’ve implemented small rate hikes; indeed, several long-term tenants received $5-$10 increases earlier in the year. For October, Metco has 35 existing tenants scheduled for rate increases, averaging +$17.43 per month (~+23.7%). This is a sizeable one-time adjustment primarily targeting below-market long-term tenants. If all accept, it will add roughly $610/month in revenue (about 10% uplift on current monthly rent) – a big win for a facility of this size. We will need to communicate these increases carefully to avoid undue move-outs, but so far our retention post-increase has been good. On the expense side, Metco remains efficient. No major unexpected costs hit in Q3. Operating expenses YTD are slightly up (inflation on utilities, a minor repair on the gate system, etc.) but generally within budget. Metco’s NOI is roughly flat to last year – any increase in revenue has been offset by small expense increases. With the upcoming rent increases and focus on occupancy, we anticipate improving NOI in the next quarter. One thing to watch is marketing spend: we spent a few hundred dollars on additional signage and local ads mid-year; going forward, we can likely rely more on word-of-mouth and the improved occupancy itself for marketing (less paid advertising), which will help NOI. Metco is also nearly done with Free Rent promotions – of the 10 August move-ins, 6 had a pro-rated discount but none had full free month deals, so revenue conversion from new rentals will be faster than at Red Door.

Wins: Metco’s wins this quarter include maintaining solid occupancy in a smaller market and successfully increasing lead flow. The fact that leads climbed each month (4 in June, 7 in July, 9 in August) shows our local marketing efforts gained traction. We also executed rate optimizations – both through street rate tweaks and planned existing tenant increases – positioning Metco for better revenue without sacrificing occupancy. Tenant satisfaction appears stable; many of Metco’s renters are long-term and provide steady income.

Opportunities: For Metco, the primary opportunity is to push occupancy to the next level. With 16 units still open, there’s revenue being left on the table. We should continue community outreach (partnering with local apartment complexes, businesses, etc.) to generate more referrals. Given the facility’s smaller size, even a modest uptick in monthly move-ins (e.g. 3-5 per month consistently) could get us to 90%+ occupancy by year-end. Another opportunity is to diversify lead sources – currently a good portion of new leads came from SpareFoot. As Red Door’s need for SpareFoot diminishes, we might allocate some marketing budget to Metco-specific campaigns or incentives for drive-by traffic. On the operations side, Metco can focus on tenant retention as well – ensuring that long-term tenants continue to feel valued especially as we implement rent increases. We should monitor response to the October rate hikes; if a few units vacate as a result, we’ll want to turn those quickly. Finally, continuing to fine-tune pricing is key: Metco’s rates should reflect its high occupancy on certain unit sizes (don’t underprice the last few large units, for instance). We have room to increase income by optimizing rates and upselling tenant insurance (Metco’s insurance penetration is a bit lower than Red Door’s). In summary, Metco’s foundation is strong – with some focused marketing and revenue management, it can steadily grow both occupancy and NOI.

Conclusion

Q3 Summary: The third quarter has been a period of growth and stabilization for our self-storage portfolio. Red Door Storage made huge gains in filling up its expanded capacity, and Metco Self Storage maintained solid performance with incremental improvements. As a whole, we are entering Q4 with much stronger occupancy (81% portfolio-wide) and a plan to boost revenue through scheduled rate increases and reduced promotional discounts. The portfolio’s lead generation and conversion processes are working very efficiently, which bodes well for sustaining high occupancy.

Key Metrics at a Glance: Year-to-date we have 58 new leads in Q3 and converted the vast majority to 69 move-ins. Active tenant count has grown to 366 across both sites (up from 349 a year ago). Combined monthly rental income for August was about $36K, slightly above last year, and poised to grow with Oct increases. Average length of stay stands at roughly 30+ months overall (Red Door ~31, Metco ~37 months), though new customer tenure is shorter due to aggressive move-in promotions. Out of the aggregator-sourced tenants we’ve gained, their average stay is ~4–5 months so far, aligning with industry norms for that channel.

Outlook: Looking ahead, our focus will shift to optimizing revenue and retention now that occupancy has improved. We will closely monitor the impact of the October rent increases – these should significantly lift income if retention holds. Marketing spend can be moderated, improving our expense ratio and NOI. We’ll also strive to improve the customer experience and value to encourage longer stays (especially converting promo customers into regular paying long-term tenants). Both facilities are near or above the crucial 80% occupancy threshold where we can be more selective with marketing and pricing. We intend to leverage that strength: at Red Door, by potentially winding down costly SpareFoot promotions and maximizing rates on scarce remaining units; at Metco, by pushing to fill the last 15–20% vacancy through targeted local marketing while also capitalizing on its stable long-term tenant base.

In summary, Q3 2025 delivered strong operational results for the owners: occupancy is up, revenue is beginning to follow, and we have clear action plans (rent increases, retention programs, refined marketing) to carry this momentum forward. With these initiatives, we expect to finish the year with higher revenues and NOI, setting a solid stage for continued growth and efficiency into the next year. The team’s execution this quarter has created a lot of “wins” – now it’s about cementing those gains and turning them into financial returns for the owners.

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